Asian Concretes and Cements’ remaining 55% stake is acquired by ACC for an enterprise value of Rs 775 Cr
The Adani Group company ACC said on Monday that, for an enterprise value of Rs 775 crore, it has purchased the remaining 55% of Asian Concretes and Cements from its current promoter, therefore becoming a fully-owned subsidiary. Adani Cement includes ACC Ltd, an Ambuja Cements subsidiary.
Before, Asian Concretes and Cements Pvt Ltd (ACCPL) was owned by ACC to the tune of forty-five percent. According to an ACC release, the business has “successfully acquired of 55 per cent stake in ACCPL from its existing promoter at an enterprise value of Rs 775 crore resulting in entire ownership of ACCPL.”
It said that cash and cash equivalents totaling Rs 35 crore are included in the enterprise valuation. While its subsidiary Asian Fine Cements Pvt Ltd (AFCPL) has a 1.5 MTPA cement capacity in Rajpura, Punjab, ACCPL has a 1.3 MTPA cement capacity in Nalagarh, Himachal Pradesh.
The statement said, “ACC & its parent company Ambuja will further bolster market leadership in the lucrative North India market with this acquisition, which is funded through internal accruals.” With this purchase, ACC’s cement capacity has grown to 38.55 MTPA (million tonne per year), while Adani Cement’s capacity has climbed to 76.10 MPTA when combined with that of its parent firm, Ambuja.
The statement said, “This strategic move enhances ACC’s cement capacity and progresses on Adani’s Cement Business’s overall target of 140 MTPA capacity by 2028.” Although ACC and the Nalagarh unit now have a tolling agreement in place, the Rajpura plant’s extra 1.5 MTPA capacity will strategically serve a sizable customer base across three states: Punjab, Haryana, and Himachal Pradesh.
Ambuja Cements and ACC both have enough clinker to sustain the Rajpura facility through any further growth. “With this acquisition, we are furthering our growth trajectory, enriching our portfolio, and continuing to accelerate our journey towards value creation for all our stakeholders,” ACC CEO Ajay Kapur stated in response to the news. This is in perfect harmony with our growth plan. The 1.3 MTPA Dahej mill of Adani Cementation Ltd. is part of the 77.4 MTPA overall capacity of cement production within the Adani Group portfolio.
With significant existing and planned capital expenditures, the Adani Group company hopes to increase total capacity to 106 MTPA by FY 2026. Sanghi Industries was acquired by Ambuja Cements last month for an enterprise value of Rs 5,185 crore.
Adani Cement, with a combined capacity of 137.85 million tonnes per year (MTPA), is the second-largest cement maker, after UltraTech Cements of the Aditya Birla Group. At Rs 2,350.35 a share, ACC Ltd.’s shares were down 1.14 percent from the previous closing.
